Grains were mostly weaker overnight with wheat and soybeans pushing to the downside while corn was trying to hold on to modest gains. In outside markets, the US dollar slid to fresh lows since November while equity futures were showing heavy losses going into the opening bell.
Palm oil hit a 5-month low and Chinese soybeans were down 27 cents a bushel in overnight trade weighing on the US bean complex this morning. The Korea Feed Association purchased around 55,000 MT of soymeal thought likely to be sourced from South America in a deal on Friday. Over the weekend, China lifted its ban on Brazil meat as did Egypt and Chile. The Brazilian government lobbied hard to get the ban removed citing the problems as isolated to a few bad plants.
Rains continued to be featured heavily in the Plains, Delta and Southern Midwest over the next 10 days which should help ease drought concerns. A rain system Tues-Thur of this week should hit much of OK/KS to help the winter wheat crop there.
Early polls are out on expectations for the March 31 planting report. On average, analysts look for corn acres of 90.9 million vs 94.0 last year and soy plantings of 88.2 as compared to 83.4 in 2016. All wheat acres in the US are expected to slip to 46.1 from 50.2 last year.
Financial markets were facing a wave of selling following Friday’s collapse of the healthcare reform bill. The failure by the new administration is causing a loss in confidence in other potential economic policy initiatives like tax reform and infrastructure spending to become enacted in the future.
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